Indian sugar maker EID-Parry's Q1 loss widens on higher inventory cost

E I D-Parry (India)

14/08/2024 10:34

BENGALURU, Aug 14 (Reuters) - Indian sugar maker E.I.D.-Parry  EIDP.NS  reported a wider first-quarter loss on Wednesday, hurt by high inventory cost.
    The company reported a loss of 785.9 million rupees ($9.4 million) in the April-June quarter, compared to a loss of 457.7 million rupees a year ago.
    Revenue from operations rose 7.6% to 7.51 billion rupees.
    For further results highlights, click (nFWN3K116H)
    

    KEY CONTEXT
    Indian sugar companies are facing rising inventory costs. Peers such as Dalmia Bharat  DALB.NS , Dwarikesh Sugar  DWAR.NS  and Dhampur Sugar Mills  DAMS.NS  also saw
an increase in these expenses in the April-June quarter. 
    India's restrictions on sugar use for ethanol and export bans in the 2023/24 marketing year have led to higher inventories.
    The country's sugar production may drop 2% to 33.3 million metric tons in the 2024/25 marketing year due to reduced planting from last year's drought. This decline
could limit exports and support global prices.
    
    PEER COMPARISON
                                                  Valuation (next    Estimates (next 12 months)      Analysts' sentiment                                    
                                                  12 months)                                                                                                
                                         RIC      PE      EV/EBITDA  Revenue      Profit growth (%)  Mean rating*  No of analysts  Stock to price target**  Div yield (%)
                                                                     growth (%)                                                                             
 E I D-Parry (India) Ltd                                                                                                                                  
 Dalmia Bharat Sugar and Industries Ltd                                                                                                                   
 Dwarikesh Sugar Industries Ltd                                                                                                                           
 Balrampur Chini Mills Ltd                                                                                                                                
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

   APRIL-JUNE STOCK PERFORMANCE

    -- All data from LSEG IBES
    -- $1 = 83.9450 Indian rupees
    


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EID PARRY STOCK APRIL-JUNE    https://tmsnrt.rs/3Arxqmg
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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Yagnoseni.Das@thomsonreuters.com))